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Summary: Our research discusses risk knowledge creation based on the knowledge creation model introduced by Nonaka and Takeuchi (1995). As in their model, the risk knowledge creation model we propose in this paper consists of four conversion modes: socialization, externalization, combination, and internalization. The purpose of this research is to show the essential factors for effective creation of risk knowledge. We use a case study method to achieve this. The case study we conducted revealed that giving too much weight to socialization is dangerous. That it is important for externalization to analyze common features or factors of many phenomena or incidents. That justifying conducting preventative measures of risk in combination is critical. Finally, that motivating people to keep their tacit risk knowledge is significant for internalization. As a consequence, we concluded that effective risk knowledge creation requires leadership that fosters a culture in which risk is discussed.

An analysis of risk knowledge creation for effective management and leadership - case studies of Japanese companies